The AFR has reported that Six Park is waiving fees and lowering its minimum investment to help lower-balance investors avoid the mistakes of active stockpicking.
Six Park co-founder and co-CEO Pat Garrett told Aleks Vickovich that there was a wealth of evidence that pointed to how hard it is to time the market successfully, even for professionals.
“We couldn’t agree more with ASIC’s warning, particularly about the dangers of trying to time the market, when many retail investors have limited financial experience,” Mr Garrett said.
“Many of the people trying to get into the market at this point in time are not likely to need holistic financial advice, they simply want to invest.
“We want to ensure as many people as possible can get invested in an affordable, diversified portfolio that’s tailored to their risk profile at a time of heightened demand.”
While he said it is understandable investors would be eager to try and achieve what they perceive to be quick and easy returns available in the first bear market in a decade, he worried that many are doing so without understanding the inherent risks.
“The amount of prospective wealth that could be lost from retail investors trying to time an extraordinarily volatile and unpredictable market could be staggering,” Mr Garrett said. “Day trading is gambling.”